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Published 30 August 2012 04:17, Updated 30 August 2012 06:42
The make-up of accounting firms is changing. Firms are in a poaching war and a plethora of mergers and acquisitions have changed the mid-tier forever.
At the same time, accountants are increasing partner numbers and growing revenue, thanks to soaring demand for business advice.
In the 2011-12 financial year, accounting firm performance is expected to post a 5.6 per cent rise, generating $15.8 billion, a report from IBISWorld forecasts. The industry is expected to grow an average 5.5 per cent each year over the next five years to be worth $20.7 billion in 2016-17.
While the big four are ramping up partner numbers in the area of consulting, partner numbers across the board are down.
Mid-tier firms are also making a comeback and going after the big four’s client market – that’s clients including wealthy individuals and family businesses, and services such as cash management and succession planning advice.
The report says while industry revenue is expected to increase over the next five years, profit margins will narrow as increasing price competition in the audit division continues to squeeze hourly fee increases.
BRW’s Top 100 Accountancy Firms annual survey will reveal the nation’s leading firms in the field by revenue and by number of employees. Entries are now open. To be considered for this prestigious list, fill out the online survey, open now, at www.brw.com.au/accounting100 Entries close September 28.